1930 BTA LEXIS 2111 | B.T.A. | 1930
Lead Opinion
The single point in dispute under the issue raised for the year 1922 is whether the stock acquired by the petitioner in the sale of his farm had a readily realizable market value, the petitioner having determined that it had a value of $29,500.
In 1922 and 1923 the petitioner and Peters endeavored, without success, to locate a market for their stock. For this purpose petitioner made two or three visits to the offices of the corporation and talked to Di Giorgio and other officers of the corporation. Peters directed his inquiries to not only officers of the corporation, but to his attorney in Hew York City and H. W. Dubiske & Co., a brokerage concern having 85 offices in the principal cities of the United. States, which was endeavoring to dispose of a large quantity of the stock it had acquired from Di Giorgio at the time of the corporation’s organization. The inquiries made and conferences had developed that the stock was not listed on any exchange and did not enjoy a regular and ready market; that the only sales being made were on a market open only to H. W. Dubiske & Co.; that no effort would be made
Under the other issue petitioner’s counsel concedes in his brief that the petitioner was on the cash receipts and disbursements basis of accounting. In the absence of proof that any payments were made on the notes given to evidence the loan and the bonus charged for making the loan, the respondent’s action in disallowing the bonus as a deduction must be sustained. J. W. Solof, 1 B. T. A. 776. See Eckert v. Commissioner, 42 Fed. (2d) 158, affirming A. James Eckert, 17 B. T. A. 263; cf. Julia Stow Lovejoy, 18 B. T. A. 1179.
Decision will be entered wider Bule 50.